A company has recently implemented a vendor-managed inventory (VMI) program with several key suppliers but quality issues are disrupting production. Which of the following actions would be more effective in dealing with these issues?
Implementing a supplier certification program involves setting quality standards and certifying suppliers that meet these standards consistently. This proactive approach ensures that suppliers are capable of delivering quality products, reducing the occurrence of quality issues that disrupt production. Tightening quality tolerances and implementing inspection at the receiving dock are reactive measures that address issues after they occur, while charging back rework costs may strain supplier relationships. A supplier certification program promotes long-term quality improvement and fosters a collaborative relationship between the company and its suppliers. Reference:
Krajewski, L. J., Malhotra, M. K., & Ritzman, L. P. (2019). Operations Management: Processes and Supply Chains. Pearson.
Heizer, J., Render, B., & Munson, C. (2020). Operations Management: Sustainability and Supply Chain Management. Pearson.
A firm experiences a supply chain interruption from a second-tier supplier. Which of the following actions is the firm likely to take to minimize future interruptions?
To minimize future supply chain interruptions from a second-tier supplier, the firm should map the supplier's supply chain to identify risks and opportunities. This involves:
Supply Chain Mapping: Creating a visual representation of the supplier's supply chain helps in understanding the flow of materials, components, and information.
Identifying Risks: By mapping the supply chain, the firm can identify potential points of failure, such as single-source dependencies, geographic risks, or capacity constraints.
Assessing Opportunities: Mapping also reveals opportunities for improvement, such as alternative suppliers, process enhancements, or inventory optimization.
Proactive Risk Management: With a comprehensive view of the supply chain, the firm can develop risk mitigation strategies, such as diversifying suppliers, increasing safety stock, or enhancing communication channels.
'The Supply Chain Risk Management Guide' by James B. Rice Jr. and Craig A. Zsidisin
APICS, 'Risk Management in the Supply Chain'
Which of the following results can be expected from sharing a common understanding of demand and consumption patterns among supply chain participants?
Context: Sharing demand and consumption patterns among supply chain participants is crucial for effective supply chain management.
Options Breakdown:
A . Improved transparency of collaboration relationships: While sharing information can improve transparency, this is a secondary result rather than a primary expected outcome.
B . Increased performance in balanced scorecard: This is too broad and indirect. Balanced scorecard performance involves many factors beyond demand and consumption patterns.
C . Reduced inventory levels for key items: This can happen but is a consequence of better planning and operations.
D . Better synchronization of planning and operations: The primary result of sharing a common understanding of demand and consumption patterns is that it aligns production schedules, inventory management, and replenishment strategies.
Correct Answer Justification: Effective sharing of demand and consumption data leads to coordinated planning and operational activities, ensuring that supply chain activities are well-aligned with actual market demands.
Supply chain integration literature
Case studies on demand-driven supply chain management
Which of the following options typically is a component of sales force automation during implementation of customer relationship management (CRM)?
Sales force automation (SFA) in the context of CRM includes several components that help streamline and optimize the sales process. Opportunity management is a critical component, which involves:
Tracking Sales Opportunities: Helps sales teams manage and track potential sales from initial contact through to closure.
Pipeline Management: Provides visibility into the sales pipeline, helping sales managers forecast future sales and allocate resources effectively.
Improved Efficiency: Automates repetitive tasks and ensures that no opportunities are overlooked, improving the overall efficiency of the sales force.
Buttle, F., & Maklan, S. (2019). Customer Relationship Management: Concepts and Technologies. Routledge.
Greenberg, P. (2009). CRM at the Speed of Light: Social CRM 2.0 Strategies, Tools, and Techniques for Engaging Your Customers. McGraw-Hill.
Which of the following inputs is used in developing a project charter?
Developing a project charter is a critical step in project management as it formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. The business case is a key input in this process because it outlines the justification for the project, including the benefits, costs, and impact. It helps in understanding the reasons behind the project, aligning it with strategic objectives, and securing commitment from stakeholders. The other options listed (B, C, D) are not typically inputs to the project charter but are used later in the project management process.
Project Management Institute (PMI), A Guide to the Project Management Body of Knowledge (PMBOK Guide), Sixth Edition.
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